A slowdown in speculative industrial development across Auckland’s Northwest has seen supply tighten while demand for quality spaces intensifies.
Bayleys executive director for commercial and industrial in Auckland, Lloyd Budd, says an acute shortage of favourably-zoned development land across the region presents opportunities for the sector, particularly delivering high-quality spaces incorporating sustainable initiatives.
“The collaborative approach required from local and central government necessitates that skilled developers demonstrate community value to deliver sustainable outcomes for unprecedented current demand,” he says.
“At the coalface, we’re observing the positive effects of greater coordination between the private and public sectors to plan for a pipeline supply of business-zoned land, which allows the market to respond in the forthcoming growth cycle.”
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Auckland’s Northwest region continues to perform as a critical growth node for the country, with provisional estimates from Auckland Transport expecting 37,000 new houses, 11,000 new employment opportunities and nearly triple the number of road users by 2046.
“Investment – spanning residential, commercial and industrial, roading and infrastructure - continues to strengthen investor confidence, buoyed by the evolution of once-rural Westgate into a 56 hectare, $1 billion-plus economic and service hub.
The addition of membership-only bulk retailer Costco, the world’s second-largest bricks-and-mortar retail chain with some 803 stores worldwide, along with tech-giant Microsoft, developing a substantial data centre off Fred Taylor Drive, demonstrates that global players are taking notice of local opportunities.
Substantiating this assurance, Bayleys continues to build its local presence, with the recent appointment of Craig Smith as director focusing on industrial and land opportunities across the region.
“Bayleys’ Northwest team continues to identify and deliver on key growth openings, providing an informed conduit between council, landowners, occupiers and developers,” Mr Smith says.
Backed by 14 years of agency experience, Smith has returned to Bayleys as the driving force behind some of West Auckland’s most significant recent transactions.
“Investment heavyweights are looking to the northwest corridor as a source of value, underscored by what is considered the ‘largest urbanisation’ programme in New Zealand.
Auckland Council’s Northwest Transformation project is set to deliver regional economic growth by creating new housing, light rail and transport initiatives.
“The strong underlying fundamentals of the region allow both occupiers and investors to look through near-term challenges and the post-pandemic economic contraction.
“Landowners, landlords and tenants are aware of these trends and continue to seek informed advice about how best to extract value by identifying opportunities, and leveraging effective marketing and skilful negotiation with a spectrum of global juggernauts,” he says.
- Article supplied by Bayleys
